Tax reboot’s back and Sharer says this time for real

A bill that would drastically change the tax system in New Mexico by repealing nearly all taxes in the state and replacing them with a low gross receipts tax with no exemptions was introduced by a Republican Senator on Wednesday. Sen. Bill Sharer, R-Farmington, called the bill “a hard reboot of our tax system” ahead […]

iStock_000001334173_SmallA bill that would drastically change the tax system in New Mexico by repealing nearly all taxes in the state and replacing them with a low gross receipts tax with no exemptions was introduced by a Republican Senator on Wednesday.

Sen. Bill Sharer, R-Farmington, called the bill “a hard reboot of our tax system” ahead of the bill’s introduction.

He described a tax system so full of exemptions and carve-outs that it now makes up over 1,000 pages. His 228-page bill, Sharer said, is much simpler.

The proposal would eliminate most other taxes and replace them with a small gross receipts tax — up to two percent, with the total going to fund the state government at one percent.

Sharer admitted it would be a big change, not just in New Mexico’s tax structure, but for any state’s tax structure.

“It’s time for New Mexico the take charge and lead somewhere,” Sharer said in a press conference.

Sharer’s legislation was assigned to two committees, the Corporations and Transportation Committee and then the Finance Committee.

The Senate Finance Committee chairman, John Arthur Smith, D-Deming, spoke to New Mexico Political Report on Wednesday morning.

Smith said he appreciated Sharer bringing the bill forward but that “the devil is in the details.”

“I think the debate and discussion needs to be taking place,” Smith said. “I’m not here to toss water on it and ignore it by any means. This is a debate that New Mexico needs to be going through.”

However, Smith said he isn’t a fan of relying so much on one form of taxation and says he is an advocate of “broad-based tax” policy “because when one become anemic, hopefully another would pick it up.”

Sharer outlined some of what the bill will look like.

His proposal would have a maximum of two percent gross receipts taxes, what he described as “one percent for the governor and one percent for the mayor.” The proposal would have one percent of gross receipts taxes go to state coffers, with 0.5 percent to municipalities and 0.5 percent to counties.

While this would replace most other taxes, some taxes would stay on the books. Sharer listed property taxes, severance taxes and gas taxes as the major taxes that would remain in addition to the gross receipts tax under his plan.

Sharer said that there would be a rebate back to New Mexicans who make 200 percent of the poverty level, but said this would have to be done by the Taxation and Revenue Department through regulation.

This isn’t the first time that Sharer has introduced legislation to have a “reboot” of the tax code. He introduced a bill two years ago but with no real thought that it would become law. He said it was “for discussion purposes.”

“This is the first time for real,” Sharer told reporters.

The 2013 bill, co-sponsored by then-Rep. Tom Taylor, made it through several committees for discussion before dying a quiet death.

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Emily’s List endorses seven candidates for Legislature

Emily’s List endorses seven candidates for Legislature

Emily’s List, a nonprofit that supports women candidates and reproductive rights, endorsed seven incumbents facing general election opponents in New Mexico legislative elections. All…
Equality New Mexico endorses 15 legislative candidates

Equality New Mexico endorses 15 legislative candidates

A New Mexico-based LGBTQ rights organization endorsed 15 candidates for state House and Senate seats for the 2024 elections.  Marshall Martinez, executive director of…
Lujan Grisham pocket vetoes two bills

Lujan Grisham pocket vetoes two bills

Gov. Michelle Lujan Grisham pocket vetoed two bills the legislature passed this legislative session: one changing the Cybersecurity Act and the other concerning law…
BLM increases what companies must pay to extract oil and gas 

BLM increases what companies must pay to extract oil and gas 

The U.S. Bureau of Land Management announced a new rule Friday governing onshore oil and gas production that advocacy groups say will help protect…
Court hears arguments in oil and gas pollution case

Court hears arguments in oil and gas pollution case

A district court judge heard arguments Friday about whether to dismiss a lawsuit that could have major implications for the oil and gas industry…
Feds announce final renewable energy rule for public lands

Feds announce final renewable energy rule for public lands

The U.S. Department of the Interior announced a final renewable energy rule Thursday that is expected to pave the way for increased wind, solar…
Amid new graduation requirements, what do high schoolers want to learn?

Amid new graduation requirements, what do high schoolers want to learn?

By Margaret O’Hara, The Santa Fe New Mexican The main things that bring Brayan Chavez to school every day: Seeing, talking to and engaging with…
Special ed teachers hope lawmakers OK pay raises, admin changes

Special ed teachers hope lawmakers OK pay raises, admin changes

By Margaret O’Hara, The Santa Fe New Mexican Brittany Behenna Griffith has a laundry list of adjectives to describe the ideal special education teacher:…
Lawmakers must find consensus on competing education spending plans

Lawmakers must find consensus on competing education spending plans

By Margaret O’Hara, The Santa Fe New Mexican A challenging task awaits New Mexico lawmakers in the next 30 days: Reconciling three very different…
Health workers fear it’s profits before protection as CDC revisits airborne transmission

Health workers fear it’s profits before protection as CDC revisits airborne transmission

Amy Maxmen, KFF Health News Four years after hospitals in New York City overflowed with covid-19 patients, emergency physician Sonya Stokes remains shaken by…
Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Gov. Michelle Lujan Grisham announced Friday $10 million in funding from the federal American Rescue Plan Act was awarded to six tribal nations and…
Proposal to curb executive powers moves to House Judiciary

Proposal to curb executive powers moves to House Judiciary

The House Government, Elections and Indian Affairs Committee discussed a potential constitutional amendment that seeks to limit the governor’s executive powers. The committee approved…
How the AZ Supreme Court decision on abortion impacts New Mexico

How the AZ Supreme Court decision on abortion impacts New Mexico

The Arizona Supreme Court ruled on Tuesday that an 1864 abortion ban is enforceable, throwing another state bordering New Mexico into the situation of…
The status of the lawsuit New Mexico joined to remove FDA restrictions to mifepristone

The status of the lawsuit New Mexico joined to remove FDA restrictions to mifepristone

While the U.S. Supreme Court considers the future of access to the abortion medication, mifepristone, another lawsuit against the FDA that would expand access…
Senators introduce legislation to aid abortion providers

Senators introduce legislation to aid abortion providers

Sen. Martin Heinrih and other Senate colleagues introduced abortion rights legislation into the U.S. Senate on Thursday. The Abortion Care Capacity Enhancement and Support…
How the AZ Supreme Court decision on abortion impacts New Mexico

How the AZ Supreme Court decision on abortion impacts New Mexico

The Arizona Supreme Court ruled on Tuesday that an 1864 abortion ban is enforceable, throwing another state bordering New Mexico into the situation of…
The status of the lawsuit New Mexico joined to remove FDA restrictions to mifepristone

The status of the lawsuit New Mexico joined to remove FDA restrictions to mifepristone

While the U.S. Supreme Court considers the future of access to the abortion medication, mifepristone, another lawsuit against the FDA that would expand access…
Senators introduce legislation to aid abortion providers

Senators introduce legislation to aid abortion providers

Sen. Martin Heinrih and other Senate colleagues introduced abortion rights legislation into the U.S. Senate on Thursday. The Abortion Care Capacity Enhancement and Support…
Politics Newsletter: Early and absentee voting

Politics Newsletter: Early and absentee voting

Good morning fellow political junkies! Early and absentee voting for the June 4 New Mexico primary begins in about a month. The nonprofit election…
San Juan County, Navajo Nation settle redistricting case

San Juan County, Navajo Nation settle redistricting case

The Navajo Nation and San Juan County reached an agreement Monday about commission districts after the tribe alleged that its members were not adequately…
MIT ranks NM elections most well-run in the U.S.

MIT ranks NM elections most well-run in the U.S.

New Mexico’s 2022 election was ranked most well-run in the country by Massachusetts Institute of Technology’s Election Data and Science Lab’s Elections Performance Index.…
BLM increases what companies must pay to extract oil and gas 

BLM increases what companies must pay to extract oil and gas 

The U.S. Bureau of Land Management announced a new rule Friday governing onshore oil and gas production that advocacy groups say will help protect…
What the low unemployment rates for months means for NM’s economy

What the low unemployment rates for months means for NM’s economy

Post-pandemic, New Mexico has had an extended run of low unemployment rates. New Mexico’s unemployment rate has remained stable at 4.0 percent since October…
Feds announce final renewable energy rule for public lands

Feds announce final renewable energy rule for public lands

The U.S. Department of the Interior announced a final renewable energy rule Thursday that is expected to pave the way for increased wind, solar…

GET INVOLVED

© 2023 New Mexico Political Report